The average price for a home in Hamilton was close to $447,003 (as of December 31st 2015 according to the Realtors Association of Hamilton/Burlington). Compare this to 2014 when they averaged at $412,873. The prices have risen due to lack of inventory as first time millennials are looking to enter the market, making it a prime time to buy, improve the property and then sell. Today’s buyer has little interest in improving the property themselves and is more knowledgeable about what a quality property should look like. They’re more willing to pay top dollar for a top quality product. The best time to buy is when interest rates are lower as it creates a lower monthly payment, while the rental rates have increased steadily over the years.
It’s imperative that you keep the housing market in mind. Look at neighbourhoods. A good school indicates a rise in value and the idea of families entering the area, looking to buy. The area of the city is certainly a major factor. This will require a much larger investment but increases your R.O.I. If the neighbourhood increases in value, so will your property. Seeing where the neighbourhood was five years ago can be a useful way of gauging where it’s going to be a few years from now. The average selling price for Hamilton Centre in 2015 was $235,397. Compare that to 2010 when it was $148,421. That’s a change of $86,976 (a 58.6% increase).